MSP Software War: RMM Providers Offer Free Autotask Go

Call it the latest shot in the emerging MSP software wars. Autotask -- in an apparent bid to counter ConnectWise, LabTech Software and maybe even Kaseya -- has reached out to several RMM (remote monitoring and management) software companies with a free Autotask Go offer. Level Platforms and PacketTrap embraced the offer, but not all RMM players are joining the Autotask Go freemium effort. Here's the update ... plus the potential implications for VARs and MSPs.

First, the facts and latest competitive moves:

Level Platforms and PacketTrap each are offering free Autotask Go licenses (for a limited time) to customers that sign up for Level Platforms or PacketTrap managed services software.

Dan Wensley, VP of partner development at Level Platforms, confirms the freemium relationship with Autotask Go, but he says Level Platforms has no plans to actively market the Autotask Go freemium relationship.

Sources at PacketTrap confirm that the company is offering up to three free Autotask Go subscriptions, which are good for one year. To receive the free subscriptions, MSPs have to sign up for PacketTrap's RMM software, the sources say. PacketTrap is actively promoting the offer through email marketing.

Autotask has not responded to MSPmentor requests for comment, but sources say the company continues to reach out to additional RMM providers and master MSPs for potential Autotask Go freemium engagements.

Not all RMM vendors are involved in the Autotask Go freemium effort. Two prime examples:

Kaseya CEO Gerald Blackie and Executive VP Jim Alves say they have not been approached by Autotask about the Autotask Go freemium effort. To me, that suggests Autotask views Kaseya as a potential long-term competitor in the PSA space.

N-able declined to join the Autotask effort because N-able didn't want to show favoritism between the three major PSA players (Autotask, ConnectWise and Tigerpaw), according to VP of Sales Mike Cullen. Instead, N-able remains confident in its own competitive product set and will look to offer the best integration possible with all three PSA offerings, Cullen said.

Countering ConnectWise, LabTech... And Kaseya?

From where I sit, the Autotask Go freemium offer seems to be a response to the ConnectWise Capital-LabTech Software relationship as well as Kaseya's potential push into the PSA market.

As you'll recall, ConnectWise Capital invested in LabTech Software, an RMM provider, in February 2010. Since that time, LabTech has grown rapidly from about 100 MSP partners to roughly 1,000 now, MSPmentor has heard. LabTech has mostly targeted Kaseya's installed base, but LabTech's progress most certainly involves some competition with other RMM providers like Level Platforms, N-able and PacketTrap. At the same time, Kaseya has been promoting an xSP product road map that includes a Business Center PSA tool.

The bottom line: Autotask doesn't want to get in to the RMM market. And a number of RMM software companies don't want to get into the PSA space. So Autotask and some RMM players seem to be partnering up to counter potential ConnetWise and LabTech competition, and potential all-in-one developments from Kaseya.

"I guess they may be trying to get back at ConnectWise Capital for investing in LabTech but I won't retaliate. I'm not afraid of Autotask Go. My reaction my be a suite offering with LabTech. But they [Autotask] are right to look toward partnerships. The reason we made the investment in LabTech was to really focus on integration. I wish them luck.

Whether we like the [Autotask] moves we see or not, I hope they’re successful because I look forward to the competition. It’s like the NFL. When the games on, it’s on. But you also have to walk to midfield and shake hands and respect them. But we want to beat them."

How Did We Get Here?

Competitive moves between Autotask and ConnectWise aren't new. But the competitive landscape certainly has been shifting for the past year or two. Traditionally, PSA and RMM companies partnered with each other... while PSA companies focused on ticket management, business management and CRM-type capabilities, RMM providers offered remote management and troubleshooting capabilities.

How have things been changing? Just follow this timeline of MSPmentor coverage:

Mid-2009: Rumors emerge about about Kaseya (the RMM provider) developing some PSA capabilities.

December 2009: Rumors emerge that ConnectWise has been closely watching an RMM provider located in Toledo, Ohio. (See tip 3 here.)

August 2010: Autotask contacts N-able to discuss potential free Autotask Go strategy; N-able declines, according to N-able VP of Sales Mike Cullen. Autotask also approaches PacketTrap at the CompTIA Breakaway show in San Antonio, Texas. PacketTrap agrees to move forward with the Autotask Go Freemium Offer, according to a PacketTrap source.

October 2010: At the SMB Nation Fall conference, more rumors about the freemium Autotask Go strategy emerge.

November 2010: PacketTrap launches email marketing campaigns that promote the free Autotask Go offer. One recent email states: "In addition to our low cost of ownership and advanced functionality by signing up with PackettrapMSP you can receive a free 1 year subscription for AutoTask GO and/or a free Server. Save time and money and improve you operational efficiency with PackettrapMSP."

Freemium... And Beyond

Over the past year, freemium strategies have become common in the MSP software space. In late 2009, N-able launched a freemium endpoint security strategy followed by a freemium backup strategy in September 2010. Now, Autotask is promoting a freemium Autotask Go strategy. And soon, a major RMM software provider expects to promote a freemium strategy with a major distributor. The effort, MSPmentor has heard, will likely include as many as 1 million managed nodes. (Stay tuned...)

Meanwhile, there are signs that the competitive PSA and RMM moves are benefiting MSPs. In recent days, I've heard directly from three MSPs that are re-negotiating their Kaseya licensing agreements based on intensifying competition that Kaseya faces from LabTech. Without ConnectWise Capital investing in LabTech, I doubt that scenario would have emerged.

The age of shelfware in the MSP software market seems to be ending. Prices are coming down. Vendors are getting more flexible in their MSP dealings and licensing agreements. Long live competition... with one caveat: MSPs need to keep pushing software providers to keep their APIs open. As long as the MSP software APIs stay open, competition and cooperation (coopetition) can thrive.

Longer-term Questions

Of course, plenty of questions remain about the Autotask Go! freemium strategy. They include:

Will Autotask cannibalize its own Autotask Go revenue growth with the freemium offer?

How many of RMM partners and software partners does Autotask plan to sign up?

Joe, I want to respond to this thread and clearly reiterate Level Platforms’ position and our corporate commitment to vendor partnership and integration programs.
Our vendor agnostic integration and partnership philosophy has remained unchanged since our launch. We partner with the entire IT ecosystem with the single objective of providing MSP’s the best integration and functionality available both from a technology and business model standpoint. The goal is to provide our partners with the broadest opportunities while showcasing the value and ability for an MSP to implement and service new or existing products. Our commitment to integrate and partner specifically with Autotask, Connectwise and TigerPaw has remained consistent and at the forefront. Level Platforms was the first to provide two-way integration with all 3 solutions. As some RMM vendors have either developed their own or waivered on integration Level Platforms remains committed to these partnerships. In the past 4 weeks Level Platforms has attended the TigerPaw event, IT Nation, and a scheduled 16 city road tour with Autotask. At each of these recent events we launched a PSA partner advisory council for each as well as the Managed Workplace 2011 PSA edition for each of these respected PSA partners.
Recently Autotask came to us with a promotional offer they wished to extend to our partners and prospects (freemium). We are pleased to participate in this promotion on the scale and plan clearly outlined and discussed openly. We have not selected one over the other nor changed our open ecosystem stance in anyway. Understanding that other RMM vendors were also being offered the same program, it would be a disservice to our partners or prospects looking at, evaluating or purchasing Autotask not to participate. This is like the dozens and dozens of mutual web casts, events, road shows, and partner engagement programs we have mutually participated in with many vendors. In fact at our Next Level Summit last week, we had over 15 vendor partners participate many of whom compete with each other. We were pleased to have Intel and HP as platinum partners. Our integration with HP datavault was one we highlighted and in fact gave away a free unit at the event. This serves as just another example of the value of our partnerships and relationships that benefit our partners. We respect every community and the fact that the partner decides who they work with and why, we support them all.
Choice, diversity, and customized solutions based on end user needs and or as technology evolves has been a core differentiator and primary value for the Channel servicing their customers. Our belief in this value makes agnostic integration a core requirement for Level Platforms partners. Most recently we are seeing this proven again with the adoption of both SAAS and cloud applications. “See All Manage All” is not possible if Managed Workplace does not monitor and help MSP’s service all devices and applications always!
The only downside to any of this has been the occasional conversation with a competing vendor partner when an integration or promotional activity like this are made public, or as is usually the case, exposed ahead of release by MSP Mentor! However after 7 years and a proven record for open and honest communication on a clearly defined direction and strategy, our partnerships are stronger than ever. The launch of Managed Workplace 2011 (+Agent), doesn’t hurt either!
Thanks for the soap box Joe!
Dan Wensley
Vice President
Level Platforms

Hi Joe,
I find all of this interesting, and I want to answer your question:
"Will other PSA players like Tigerpaw Software jump into the freemium battle?"
At this time, Tigerpaw has no plans to offer a freemium/free/discounted package. We think there is a place for all products, but each product serves a different need and a different market. For example, you can buy a Kia or you can buy a Lexus (I have owned both). They will both get you from home to the office and back again, but the Kia will do it for a lot less money. The Lexus will cost you more, but you will have a much greater driving experience and greater reliability. Also, if anything goes wrong, Lexus will take much better care of you – even giving you a loner vehicle when you get an oil change! We have the only product that is truly all-in-one with a state-of-the-art user experience, and we provide an 800 support number that ANYONE at customer site can call for help. If you call, you will wait on average less than 3 minutes to reach a support technician in our building. We think that is something special.
We don’t want to lower the quality of our product, strip out features, or remove the level of service Tigerpaw customers expect just to get a foot in the door.
I guess I will throw in my 2 cents on the partnership discussion as well. Tigerpaw is committed to being a great partner (read: neutral and fair) and you’ll see us do things as evenly as possible with Level Platforms, Kaseya, N-Able, and Zenith. We have witnessed relationships used and abused in this industry, and that’s not the Tigerpaw way. We are not, nor can we conceivably imagine - entering the RMM space. What we do is provide best in class TOTAL business automation software with integrations with key partners. We will continue to focus on our core strengths while nurturing partnerships for the long-term. We think that’s the path to success.
James Foxall
President, Tigerpaw Software

Hey, Joe --
Sorry I was unable to respond to your request for a quote. I've been travelling for the past few days and couldn't get to your email.
So, to answer your questions and speculations with some facts, Autotask Corporation has enjoyed close working partnerships with all RMM vendors. From Day 1, we made the strategic business decision NOT to encroach into the Remote Monitoring and Management software business.
We feel that this is outside the core of an IT Business Management platform, and that there are many superb companies in that space with terrific products that will only get better with time. Our strategy has been to develop an open and robust API that can seamlessly integrate and plug into any and all RMM tools, giving our customers the freedom of choice which tool they use and what vendor they with.
Regarding the so-called Autotask Go! "freemium" offer, from time-to-time we enter into special arrangements and special deals with our business partners designed to stimulate technology adoption. These arrangements range from special subsidies (where the partner covers the cost of our software and then includes it as a premium to purchase a more expensive product), to discounts, to product trials of various lengths of time.
The timing of these offers, and the partners that we join forces with at any given time depends upon a number of factors aligning with both parties. In all instances, however, our partnership programs are made available only under special conditions and for a limited time. We are not freely "giving away" Autotask Go!, nor do we intend to.

Glenn: I don't personally run the software so I'll let readers decide. But I do appreciate your readership.
Bob: Thanks for the note. I appreciate the update. In the end, MSPs that participate in the special offer from selected RMM vendors are receiving Go for free for one year... So, from the MSP's perspective you are giving it away -- even if there's a special silent financial arrangement between Autotask and the RMM partner.
Please keep us posted as other partners potentially participate in the arrangement.